Home Pets Sensitive Care

Introduction

Pets make up a significant part of human life and humans of all status, be it rich or poor in London, have pets and will continue having them for different and varied reasons including companionship. A survey by the Peoples Dispensary for Sick Animals (PDSA, 2019) confirms that up to 50% of the UK adults own a pet, 24% of the adult population have cats estimating the number to 10.9 million while another 26% have dogs bringing the number to 9.9 million pet dogs. While most people poses pets and may from time to time indulge in taking care of them including cleaning, walking them and grooming them to enhance a relatively good life, a majority of pet owners in the UK are not quite up to date when it comes to the regular care of pets including cleanliness and health. This may be due to a wide variety of reasons including lack of effective knowledge, limited time to engage the pets care as well as limited amount of professional pet care centres within London UK. This base lines the concept behind the new business idea of providing pet care services. Home Pets Sensitive Care will provide pet care services , including business dissertation help, to the population in Liverpool, UK.

The company will develop and produce an application designed to be able to assist pet owners with the necessary pet care services required for healthy and long living pets. The application will be able to help customers to book an appointment for a vet or a carer who can offer different services including grooming, surgeries, vaccines, health checks, and online shop for other pet products and services. All the required services except surgery will then be delivered at the customers’ home in a van. Consumers will have the ability to view the different cost for different products and select whatever services or products they may need from the App. The van will then be a channel for supplying and delivering services as well as pets clothes, treats, food, toys and any other often required products and services. The personalized pet care services provided by the application will ensure necessary services for the many pet owners within Liverpool, UK, who may not have time to take their pets to the vets. This application brings them the services to whichever location is more convenient for them at whatever time required as such enhancing the efficiency for pet owners who are also busy with their regular work schedule. The service providers can deliver the services in the van on the park or at the courtyard or pick up the pets to their service centres and bring them back after the services, all based on the consumer preference.

Primary research conducted within various neighbourhoods in Liverpool highlight that 2 out of 5 pet owners in the UK are not effectively aware of the necessary requirements for pet care despite an increase in the number of pet lovers. Increasing view of pets as family members requiring humanization, clothing, grooming, feeding as well as health and general care highlights the market gap that will be filled by this business opportunity. The report has been developed from the perspective of a CIO, one of the key C-level corporate executives in the company. The objectives set by the CIO for the first 3 years of the business are as follows;

Develop an economically viable business model that would allow Pet owners in Liverpool to procure pet care services at their convenience

Ensure effective actionable information with regards to the development and operation of the business.

Articulate the business plan for the benefit of other investors and stakeholder understanding and approvals.

Customer Value Proposition Canvas

Ayvari and Jyrama (2017) point out that value proposition thinking is a key component to a value focused company or organization given that it enhances and ensures organizations focus on activities for consumer profitability. The Value Proposition Canvas (VPC) as such is a tool which can help ensure that a product or service is positioned around what the customer values and needs. The CVPC is formed around two building blocks – customer profile and a company’s value proposition highlighting the gains and drawbacks for the company as well as the customers. An analysis of the business plan and market area as such led to the development of the CVPC as highlighted.

Products and Services: Among the services provided by the business include Home Pet care services ranging from Grooming, surgeries, vaccines as well as health checks and general care services. The business will also provide pet products and services ranging from pets clothes, treats, food, toys and any other products or services often required by pet owners to which they are not entirely capable to provide.

Gain Creators: this includes exclusive ways that the business will provide its customers with unique gains and value addition and in this case include: having a convenient schedule due to the ability of requesting a specific time slot for the required services. The convenience is further extended to space given that the services are provided in a van in a consumer requested space. In addition customers with multiple pets can schedule regular checkups and pet health management to ensure effective care of their pets.

Pain Relievers: the developed services will enable pet owners to access general and health care services for their pets thereby enabling them to maintain their pets’ health and well being without having to do it themselves. It also saves the owners regular vet visiting and expenditure as well as time consumed during these visits as the services are provided with a van at the customers’ convenient time and space.

Gains: some of the gains and benefits intended for the customer include convenient care for their pets ensuring their health and general safety. The consumers will also receive these services at their convenience due to the home delivery of the services; in addition multiple pet owners can have dedicated and qualified care givers for their pets ensuring the achievement of the dignity that the pets are identified with.

Pains: among the pains expected to be experienced by the customer despite being limited include: non availability of the services upon pre order as well as high expenses for the products and services provided

Customer Jobs: among the job expected from the company include the usage of latest developed technologies to be able to order for these care services as well as availing their pets for the scheduled care in the scheduled time limits.

Lean Business Model Canvas

A lean business model canvas can be defined as a simple, one page business model designed to allow its user to visualize an entire business plan at a glance. Adopted from the original business model canvas by Alexander Osterwalder as highlighted by Airth (2019), the Lean Business Model Canvas focuses on the specific environment of start-up businesses. It is designed to prioritize actionable items including specific items within a business that lead directly to actions to be taken as well as high risk areas such as any areas of extreme uncertainty. Nine building blocks make up the lean business model canvas including: problem, solution, unique value proposition, unfair advantage, channels, customer segment, cost structure, revenue streams as well as the key metrics.

Problem

There has been an increasing number of pet lovers and the rising number of pets and pet owners within different cities in the UK, individuals buy pets for different purposes and reasons including companionship as well as gift giving. However, the eventual owners despite wanting and having a pet and actually getting to have one, may not be efficiently accustomed to the general and health care that the pet may require for a dignified and enjoyable life. In addition a lot of pet owners within UK are workers with tight schedules and may not have significantly enough amount of time to tend effectively to their pets and enhance their well being, not forgetting big families with multiple pets or individuals who own multiple pets and may as such requires home pet management and care services all of who are increasing in number every single day within the UK.

Solution

Blank (2013) emphasizes that finding the solution to business problems and challenges is not easy and requires extensive grassroots research and studies. Research on the ground highlights that 2 out of 5 pet owners in the UK are not effectively aware of the necessary requirements for pet care, further a majority of pet owners do not effectively take up general and health care of their pets as required due to tight schedules and lack of awareness of the need and importance. Developing this app as such links pet owners to vets and care givers enabling effective and convenient care for pets and their owners by the mobile service providers who will use vans and move around the neighbourhoods in Liverpool.

Unique Value Proposition

A value proposition highlights the ultimate added value that a customer should derive from a product or service which is unique within the market to a single business. It highlights the primary reason why consumers should subscribe to a business and use its products or services. And in this proposal the localized pet care services provided as well as the pet products and care on behalf of clients are in themselves unique services and products that significantly add value for the customer. Customers can be able to contract services at their convenient time and places as well as have their pets effectively cared for with services ranging from grooming, vaccines as well as regular health checks and general care

Unfair Advantage

Maurya (2012) defines Unfair Advantage as a quality, asset, or property that makes a business, company or organization unique and one that is not easily copied. For instance reputation, unique brand experience or unique partnerships. The unfair advantage presented includes a unique business concept and brand experience of Home pet service. This includes specialized pet caregivers and Vets who provide literally any required services or products at the customer’s convenience in both time and location 24/7 within the city of Liverpool

Customer Segments

The ideal customer segment targeted the App include middle aged pet owners between the ages of 20 and 40 who live a hectic work schedule and despite needing and actually owning pets, do not have efficient time to tend to their needs and see that they are effectively taken care of. It also includes pet owners who own multiple pets and as a result require professional services and assistance towards the management and care of their pets.

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Channels

Channels are a significant component of any business given that they are the ways with which a business or organization reach their customers and consumers, whether for delivery of the products and services or for acquiring feedback that is necessary for enhancing consumer value (Mullen, 2016). The main channel of distribution for our product will be the App where pet owners will be able to book or order any services required. They are then connected with the necessary professionals to provide their required services and products within a van at their required location and time. Other tertiary channels include strong use social media platforms such as Instagram, Twitter, and Facebook to promote our products and services as well as build the business brand and customer loyalty.

Cost Structure

Cost structure will be a combination of fixed costs, which “remains stable within a relevant range of business activity”, and a variable cost which “increases in line with business activity” (Quinn, 2011). Fixed costs include service and delivery van, Salaries to the carers and Vets, Licenses, App development cost, accounting services, marketing and advertisement as well as insurance costs. Variable costs on the other hand include vaccines and relevant pet medication, fuel, packaging, pet products, cloths and other products and services to be provided on a regular basis to the customers.

Revenue Streams

A distinct source of revenue is called revenue streams, which is mostly documented in business plan or strategy, prepared for investment. The businesses revenue stream include pet care services provided to pet owners within the City of Liverpool, including grooming, vaccines, regular check up as well as pet foods, cloths as well as other pet products and services sales.

Key Resources

Some of the businesses key resources include financial resources such as capital for the delivery channel set up as well as the development of the business App. The business will also require physical resources including Vans and pet grooming and health products as well as other materials such as packaging materials. Human resources in terms of drivers, pet care givers, accountants and vet doctors also make up part of the businesses Key resources.

CIO Level specialist Contribution

The CIO is one of the least popular and most important specialist positions for businesses especially in the current digitally enhanced business market (Schneider, 2020). Chief information Officer (CIO), Chief Digital Information Officer (CDIO) or Information Technology Director (ITD) are all relevant titles to the position which are often associated with the most senior executive in an enterprise responsible for information technology and computer systems use in order to support enterprise goals. Darrow (2015) highlights that the CIO in addition to contributing strategically to the development of the business in each step with relevant information updates and planning for business growth objectives, also creates value for the business through technology, oversees the development of customer service platforms ensure technology systems and procedures lead to outcomes in line with business goals as well as manage IT activities and development of team personnel.

Some of the Major activities performed by the CIO within the project and business activities include;

Overseeing the effective development testing and use of the Mobile Application developed for the ordering of services and products related to pet home care services

Conducting effective studies and deep research with regards to the effective market for the business opportunity within Liverpool, UK such as effective locations within Liverpool with the highest need for pet care services

Identifying potential clients with multiple pets or with pet homes, who may require pet care services

Leveraging technological and digital resources to develop a portfolio and inventory of the necessary pet services and products required by pet owners. Some of these include; Vaccines and medical requirements, grooming and general care products as well as subsidiary products such as pet foods cloths and other products.

Financial and Financing Plan

Cost Structure; Cost structure will be a combination of fixed costs which “remains stable within a relevant range of business activity” and a variable cost which “increases in line with business activity” (Quinn, 2011). Fixed costs include service and delivery van, Salaries to the carers and Vets, Licenses, App development cost, accounting services, marketing and advertisement as well as insurance costs. Variable costs on the other hand include vaccines and relevant pet medication, fuel, packaging, pet products, cloths and other products and services to be provided on a regular basis to the customers.

The CFO: The CFO was in charge of developing the financial plan for the business model. Being one of the key C-level corporate executives in the company, the CFO was responsible for conducting MVP testing and various market researches to determine the initial investment required for the business. Evaluation of the cost structure analysis indicated that an investment of £100,000 was necessary through which the company would be able to generate net revenue of £300,000 at the end of the first year. The initial investment of £100,000 will be divided by the CFO of the company for fixed, variable and operational costs based on each requirement.

The break-even analysis developed by the CFO also revealed that the revenue profit for the upcoming 5 years, which shows a steady increase of 10%. The use of such financial modelling tools helps to estimate the profitability and market trends of the business proposal. In addition to this, the cash flow analysis prepared by the CFO also revealed the estimated profit/ loss margin that the business can incur in the next 5 years.

Revenue Streams; The businesses revenue stream include pet care services provided to pet owners within the City of Liverpool, including grooming, vaccines, regular check up as well as pet foods, cloths as well as other pet products and services sales.

Sources of Finance: Crowd funding, bank loan and Angel investment in order to have a backup plan if out preferred type of sourcing will be rejected.

Uses of £100,000 Finance: capital will be to used pay all the fixed costs for the first year of the operation which is £45,000 another £40,000 will be used to pay off the variable costs for the first 12 months, Additional 20,000 was isolated for any contingencies or extenuating costs that may be incurred in the process of the business start up and development.

Summary

The entire business report has been presented from the perspective of the CIO of the proposed online business: Home Pet Sensitive Care and involves the roles and responsibilities that should be performed by the CIO within the general implementation process of the business. These include highlighting the relevant and necessary information required for every step of implementation including using technological and digital platforms to enhance the market position of the company. The plan also highlights the CFOs summaries with regards to the start up cost required for the implementation process highlighting the relevant positions and places for using the resources. The key points demonstrated in the report are as follows.

The business provides affordable home pet care services including Vaccines, grooming, regular checkups, pet products such as food and cloths and other pet services conveniently at the location and time of request by a client within Liverpool.

The business has a well-prepared customer profile that is time-friendly, cost-friendly and environmentally friendly.

The business carries out its business operations and activities in a shared economy business environment where every stakeholder can benefit from each other this includes customer benefiting from efficiency of time and location as well as the care givers benefiting from jobs which they would otherwise not have due to the conditions in the city.

References

Airth, M. (2019). Lean Canvas: Definition and Principles. Study.com. Retrieved 16 March 2020, from https://study.com/academy/lesson/lean-canvas-definition-principles.html.

Ayvari, A., Jyrama, A. (2017) Rethinking value proposition tools for living labs. Journal of Service Theory and Practice. 27(5) pp.1024-1039. Available at:

Quinn, M. (2011) Brilliant Accounting. Harlow: Pearson Education Limited.

Schneider, L. (2020). CIO Job Description: Salary, Skills, & More. The Balance Careers. Retrieved 16 March 2020, from

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